Shares of this smallcap company surged 11 percent in Tuesday’s trading session after reporting an increase in net profit by 61 percent QoQ. The shares have delivered a decent return of 17 percent to its shareholders in one year.
With a market capitalization of Rs. 7,192 crores, the shares of Garware Technical Fibres Ltd started Tuesday’s trading session on a higher note at Rs. 3,303.25 compared to its previous close of Rs. 3,207.90. During the trading session, the shares hit a high of Rs. 3,577.70, gaining around 11 percent and are currently trading at Rs. 3,538.65 apiece.
Such a bullish movement in the share price was observed after the company announced quarterly and financial year ended 31st March 2024 results. Quarterly, the revenue increased by 32 percent from Rs. 289.37 crores during the December quarter to Rs. 382.27 crores in the March quarter. In addition, the net profits zoomed by 61 percent from Rs. 43.26 crores to Rs. 69.48 crores during the same timeframe.
Comparing the same metrics on a YoY basis, the revenue increased marginally by 3.17 percent from Rs. 370.49 crores during Q4FY23 to Rs. 382.27 crores in Q4FY24. On the other hand, the net profits increased by 17 percent from Rs. 59.67 crores to Rs. 69.48 crores during the same timeframe.
The company’s EBITDA stands at Rs. 103.88 crore in March 2024 up 18.67% from Rs. 87.54 crore in March 2023. Further, Garware Technic EPS has increased to Rs. 34.09 in March 2024 from Rs. 28.95 in March 2023.
Additionally, the board of directors recommended a dividend of Rs. 3.00 per share (30 percent) of Rs. 10 each, for the financial year 2023-24, for approval by the Members of the Company at the ensuing Annual General Meeting.
Moreover, the management expects strong H1FY25 on account of continuing good demand in the Aquaculture segment from Chile and Norway for their newer solutions and also expects to continue its growth momentum with good visibility in the Geosynthetics business.
According to the latest shareholding pattern, the Promoters possess 53 percent of the company’s shares, while Domestic Institutional Investors (DIIs) hold 10.18 percent, of which 3.40 percent is held by SBI through its Sbi Magnum Global Fund. Foreign Institutional Investors (FIIs) account for a 9.25 percent stake, with the remaining 27.57 percent held by Retail Investors.
Headquartered in Maharashtra, Garware Technical Fibres was incorporated in 1976. The company manufactures and provides solutions in high-performance polymer ropes, fishing nets, sports nets, safety nets, aquaculture cages, coated fabrics, agricultural netting and geosynthetics.
Written By Vaibhav Patil
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